Does the Apricot Lane Franchisor need to post a bond when seeking injunctive relief?
Apricot_Lane Franchise · 2025 FDDAnswer from 2025 FDD Document
t be applicable to the ownership of shares of a class of securities listed on a stock exchange or traded on the over-the-counter market that represent five percent (5%) or less of the number of shares of that class of securities issued and outstanding. Associate expressly acknowledges that Associate possesses skills and abilities of a general nature and has other opportunities for exploiting such skills. Consequently, enforcement of the covenants made in this Section will not deprive Associate of Associate's personal goodwill, or ability to earn a living.
- 8. Injunction. Associate hereby acknowledges and agrees that in the event of any breach or threatened breach of this Agreement, the Franchisor shall be authorized and entitled to seek, from any court of competent jurisdiction, preliminary and permanent injunctive relief in ad
Source: Item 23 — RECEIPTS (FDD pages 51–222)
What This Means (2025 FDD)
According to Apricot Lane's 2025 Franchise Disclosure Document, in the event of a breach or threatened breach of the agreement, Apricot Lane is authorized to seek preliminary and permanent injunctive relief from a court. The document specifies that Apricot Lane can obtain this injunctive relief without needing to post a bond of $500 or more, provided they give due notice to the franchisee.
However, the franchisee's sole remedy if such injunctive relief is entered is to seek dissolution of the injunction if warranted after a hearing. The franchisee expressly waives all claims for damages resulting from the wrongful issuance of any such injunction.
This clause favors Apricot Lane by potentially reducing the financial burden associated with seeking injunctive relief, as they are not required to post a bond. This could make it easier and faster for Apricot Lane to pursue legal action to protect its interests. However, the franchisee retains the right to challenge the injunction and seek its dissolution if they believe it was wrongfully issued, although they cannot claim damages for its wrongful issuance.